Why some big tech companies fail to understand and serve local small retail businesses

Independent retail thrives on relationships, not just transactions. This is a fundamental truth that too many POS software providers fail to grasp. Or, maybe, they choose to ignore it as it does not serve their goals.

When technology companies design tools for the local shop, they often overlook the human element that makes these businesses successful. This disconnect is most visible in two areas: the user experience for casual staff and the move toward percentage-based pricing.

The Reality of the Shop Floor

Local shops are often powered by casual employees. These staff members might only work one or two shifts each week. They do not have the time or the desire to become experts in complex software. For them, the Point of Sale system is a tool to achieve a single goal: serving the person standing in front of them.

When a customer is waiting, speed and accuracy are the only metrics that matter. A casual staff member needs intuitive interfaces that do not require constant retraining. If they have to navigate a maze of menus to process a simple return, the technology has failed. Large software companies often prioritise their own development roadmaps over the immediate, practical needs of the person behind the counter.

The Problem with Automated Support

In an attempt to lower the cost per contact, many tech behemoths have replaced human support with automated systems and chatbots. In a high-stakes retail environment, this is a liability. An independent retailer cannot tell a frustrated customer to wait while they navigate a tiered support ticket system.

Retail is personal. This is so true. The personal experience you have in a shop is what will bring you back.

When the technology glitches, the retailer needs a fast, human response. Automation might save the software company money, but it costs the retailer their reputation and their relationship with the community.

The Success Tax

The trend toward charging a percentage of every transaction is perhaps the clearest sign of this disconnect. This pricing model functions as a tax on the retailer’s hard work. A sale in an indie shop is the result of curated inventory, local knowledge, and exceptional service. The software provider facilitates the payment, but they do not create the relationship.

A percentage-based model penalises success. As a shop grows and builds its community, its software costs rise automatically, even if the service provided remains exactly the same. Independent businesses need predictable overheads. They deserve a flat-cost utility that supports their growth rather than a silent partner that takes a cut of every handshake.

A Path Forward

Software should be an invisible support system. It should empower the staff, respect the retailer’s margins, and stay out of the way of the customer experience. For local retail to remain the heartbeat of our communities, we need technology that values people as much as it values data points.

Tower Systems offers personal service to local independent retailers using its POS software.